Insurance Tips & Information

Insurance Tips & Information

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Discounts for Drivers over 50 and Retired Drivers

June 28, 2011

When it comes to car insurance, it pays to comparison shop. This is particularly true for drivers over 50 and those who are retired. The various companies offering auto insurance have policies in place that give price breaks to these two groups as long as a few requirements are met.

Why Experienced Drivers Are Eligible for Discounts

Research has demonstrated that driving skills improve with years of experience, but insurance companies did not need scientific studies to demonstrate this point to them. They knew it already from examining their own statistics. Accidents and moving violations are less common among drivers in their twenties than drivers in their teens, and this trend continues as age increases. Because experienced drivers are statistically less likely to cause incidents which cost the insurance company money, they can be offered lower auto insurance rates for coverage.

Drivers who are retired may be eligible to receive a discount, but even those not yet of retirement age can receive price breaks from some companies. These "pre-retirement" discounts usually begin when drivers reach age 50.

Not all companies offer the same discount. Some may only offer a price break on the premium for a basic accident policy, while others may have older driver discounts available for a wider range of auto insurance products.

This variety is why it is essential to work with a price comparison service that can help retired drivers and those over 50 to take advantage of the differences among companies when it comes to car insurance.

Requirements for Discounted Car Insurance

Although the rules can differ from one company to another, most insurance companies have similar guidelines. Discounts for older drivers can usually only be obtained when both of the following apply:

the retired or older driver is the principal operator of the vehicle being insured

the retired or older driver has a good driving record

Who Qualifies as a Retired Driver?

Individual companies' policies may differ, but some methods to determine retirement status are fairly common. In general, in order to qualify as retired, a driver must not operate or manage a business and must not have earned income from any sort of employment or office during the past six months. In addition, the driver must either be over 65 or currently receiving a pension under one of the qualifying systems. These generally include:

If a driver is currently working in a professional occupation, he or she will probably not qualify as retired even if no income has been earned in the last six months. This could be the case, for example, when a real estate agent aged over 65 works on commission and has not made any sales in half a year. The lack of income does not indicate retired status if the driver is currently working.

In some cases, the discounts for older or retired drivers can amount to a significant sum well worth the small effort it takes to shop using a website that will compare insurance rates for you.